FAQ Which Books should a Beginner Read?

[timsk]

. . .The less you know about how someone else views the markets and their strategies and so forth, the better equipped you are to make decisions and accept responsibility for your own trading decisions.

Hi TE,
Welcome to the site!

Good post and I expect many members will agree with what you say. Given that this is a FAQ in the 'New Traders' forum, most people reading it are likely to be inexperienced newbies. Nothing wrong with that of course, we've all got to start somewhere. However, it takes a massive amount of self-confidence and, even, a good measure of arrogance, for the newbie to do as you recommend in the section of your post I've quoted. I suspect very, very few people make the decision that - beyond reading books / websites and what not about the basic mechanics of trading - they're going to work everything else out for themselves without any external input. My guess is that if there are any traders out there that have actually done that - they are as rare as hens teeth.

Having said all that, your point is very valid - but it's a real catch-22 for the majority of newbies, IMO.
Tim.

 

[random12345]

Trading in the Zone and The Disciplined Trader, both by Mark Douglas
A commonly held belief amongst many traders is that the obstacle to trading profits isn't the markets or your methodology - it's you! These books are widely regarded as essential reading to help you develop the right mindset to trade successfully.

This won't be popular, but I honestly believe Trading in the Zone is a terrible choice for a retail trader. It wasn't written with the current modern, very under capitalised retail traders in mind and you would do far better by thinking that it IS indeed you method that is flawed rather than your psychology. Growing the balls to trade a losing method is obviously a very, very, very bad combination.

 

[15 min tlb]

This won't be popular, but I honestly believe Trading in the Zone is a terrible choice for a retail trader. It wasn't written with the current modern, very under capitalised retail traders in mind and you would do far better by thinking that it IS indeed you method that is flawed rather than your psychology. Growing the balls to trade a losing method is obviously a very, very, very bad combination.

A trader can have a very good method , but without knowing himself and his worst enemy , he can not be ready for the heat of the moment in war ................when everything in technical anylysis and set ups gets fuzzy and dubious ,the mind and emotions control everything in the heat of the moment.

The method does not control the trader , it is the mindset which comes into action , in uncertainty. Phsychology is more important and makes up 80 % of a trader.

We have inexperienced ,unskilled , amateurs , method less and clueless retail traders.They need phsychology more than a method , to hold them together under stress. , a method can not hold them together.

 

[Thermal Ebb]

Having said all that, your point is very valid - but it's a real catch-22 for the majority of newbies, IMO.

You’re right. I did wonder about the benefit of offering an opinion. Advice is much easier given than taken, but by far the more valuable when earned.

 

[Allys]

No matter what they say I think that of course knowing the basics of trading is very, very important. But! You can know a lot and be not able to implement this because of the psychological issue. I do not recommend to read a lot. I think there should be an overall basics in economics so that you can understand the meaning of the events and it probable impact. And also you should cope with your emotions. As I have read in the "Trader's Psychology" book on Profiforex website: "A professional trader concentrates on skilled trading, but not money. Of course, first of all, this is the psychological trick, that helps to get rid of fear and greediness. It helps to keep your head in any situation and wait for the right time. " I think this is a very right thing. Anyway it brought me success so far.

 

[Steakeater]

I'm guessing this site is predominantly for retail traders and as such, choice of reading material is discretionary. One of the benefits pro traders have is having a largely proscribed nucleus of mandatory material which is normally substantial enough to preclude the time or energy for too many forays into the wider publishing market.

Bear in mind that book written for traders, even written by traders, are largely an exercise in self-promotion and basic product marketing. Even with good intent, there is little to choose between one experts output and another’s in terms of helping develop trading skills.

I’d go further and suggest apart from the basic mechanics of market structure, price development & discovery and operational trading mechanics, most trading books work against the best interests of the reader.

The less you know about how someone else views the markets and their strategies and so forth, the better equipped you are to make decisions and accept responsibility for your own trading decisions. There are only so many things you can say about price: it’s either moving directional (trending) or not. Everything else is a unnecessary bolt-on. Unnecessary to the reader, but vital to the author/publisher to validate publishing their ‘new’ approach/methodology/system etc.

Of course, the more complex derivatives and structured trades do require detailed explanation. But then there is the argument that retail traders shouldn’t really be palying with these asset classes and derivatives anyway.

What material would you recommend to provide information and a basic understanding of the market mechanisms then without personal views?

 

[malaguti]

What material would you recommend to provide information and a basic understanding of the market mechanisms then without personal views?

try John J Murphy's "Technical Analysis of the financial markets"
has everything in that book that any course will charge you a couple of grand for

 

[newtrader10]

Stop Losses by Matt LeRouge - it's short and cheap but gets straight to the point and I reckon it's already Stopped me Losing hundreds of dollars!
Good luck!

 

[Luc.Chase]

Al Brooks three-book set on price action and his videos and his trading room. They cover Trends, Ranges and Reversals.
http://BrooksPriceAction.com

Cadaver Trading also good.

 

[bustech]

Noting to do with trading, but everything to do with trading.

Life of Pi - Wikipedia, the free encyclopedia

 

[satriani]

i recommend Warren Buffett Books.

 

[trader_2010]

"Bhagavad Gita" - Krishn readies Arjun for battle....

extremely useful for trading psychology.. and life in general

 

[Sigma-D]

Why Smart People Make Big Money Mistakes; Belsky & Gilovich

The Secret Science of the Stock Market; Jenkins

The Profit Magic of Stock Transaction Timing; Hurst

The Geometry of Stock Market Profits; Jenkins

George Wollsten: Expert Stock Trader; Bayer

 

[Sigma-D]

Oh, and the Kama Sutra. It'll prepare you for all the ways the market will **** you.

 

[robster970]

Golf is not a game of perfect - Bob Rotella

http://www.amazon.co.uk/Golf-Game-Perfect-Robert-Rotella/dp/0743492471

 

[unexposed]

I am very new to trading and i am still learning the ropes and trying to increase my knowledge. I am currently reading 'the market whisperer' by Meir Barak - i have found it very enjoyable and informative so far. Has anyone else read this and have any views?

Also, which books would people recommend in particular? I have read through some of this thread (granted i have not been through every page) but if there any 'must reads' it would be appreciated.

 

[timsk]

. . . I have read through some of this thread (granted i have not been through every page) but if there any 'must reads' it would be appreciated.

All in posts #1 and #2 unexposed of this very thread!
Tim.

 

[Shashank_Shekhar]

First 5 books

There are a lot of books listed here. But the sheer no of books to read can be overwhelming and confusing for an absolute newbie.

What I would highly appreciate is a list of 5 books to be read at the very beginning and then move on to more of them.

In my extremely limited experience, books can be categorized into three catogories:
1. Psychology
2. When/what/how to buy
3. General reading

I am a complete newbie and still trying to prioritize what to read. I am currently reading 'Reminiscences of a Stock Operator'. Awesome read.
But after this what should I read?

Should I read books on Technical Analysis or options or something else entirely?

Technical Analysis tells me when to buy and when to sell. But after I know that, what is the best instrument to use?

I would highly appreciate and be very grateful if some experienced trader could tell me what are the five MUST READ books encompassing trading psychology, when to enter/exit, how to do so and how to put stop losses in place.

A list of 5 books followed by the next 5, 10 or 15 will be highly beneficial rather than a dump of 50 books in no particular order. I sincerely hope I am making some sense here.

Looking for some positive advice/guidance from seniors on this forum. Many thanks!

 

[MarcusJohansson]

Hello.

Do you guys know about a good book about techincal analysis for forex trading?

Best regards

 

[timsk]

Hello.

Do you guys know about a good book about technical analysis for forex trading?

Best regards

Hi Marcus,
If you want a book that covers the general principles, then John Murphy's book linked in post #1 of this thread is as good a place to start as any. If you want a sceptics view of TA, then Alistair Blair's book listed in post #2 is very good. If you're wanting a detailed examination of how to use TA with specific types of charts, then you'll need to focus on the experts for each genre, e.g. Nison on Candlesticks and du Plessis on point and figure etc. listed under 'Trading & Technical Analysis' - also in post #2.
Tim.